The political knifes are drawn

[Spexxvet]

Originally Posted by skysidhe

spex

Here is a simple google search. Take it for what it's worth. If you don't like what it says, maybe you can find something to the contrary.

http://libertyworks.com/will-a-tax-h...an-fewer-jobs/

http://www.dispatch.com/live/content...owth-jobs.html
Also, I am a democrat. I voted for Clinton. The unemployment rate at the time was about half it is now. The country was able to afford higher taxes.

As far as individuals go. This is the tax burden people have to look forward to in a shaky economic climate.



In January, If the person making 50,000 is paying $605 more in taxes, it isn't hard to assume they will be spending less.

What's striking is the couple who make $50,000 will pay $2,105 more in taxes.

The dispute is about the taxes for the wealthy not the people making $50k. The Clinton era top bracket was 39.6%, Bush lowered it to 35%. Looking just at the effect of this change, if a small businessman nets $500k per year, and is married, his taxes will increase by $11,500. His net income for the amount above $250k would go from $162.5k to $151k. That's not counting his income from the first $250k he makes. Will he create jobs with this additional income? Who knows?

Looking at the big picture, this guy probably owns an investment property in Key West (tax protection). Every time he goes to check on his investment (vacation) it's a business expense, and the cost of his trip is not taxed. Wealthy people are able to hide income those sorts of ways.

The 1950s was a period of low unemployment and low inflation. From 1951 until 1963, income over $400k was taxed at 91% or 92%. I've heard the theory that because of this high tax, people reinvested in their business, through capital improvements and better standard of living for their employees. I don't believe that there is a causation of higher taxes on the wealthy and high unemployment. I believe that an increased disposable income for the middle class will increase jobs. Let's say the man in the example above owned a company that makes refridgerators. Instead of giving him the $11.5k, suppose that money is distributed to 23 middle class people, each of whom needs a refridgerator. That may increase the man's business enough that he would have to hire workers to keep up with the demand for his product.